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Press Release
Crosstex Completes Sale of Seminole Gas Processing Plant and Another Asset for $105.0 Million; Amends Debt Covenants
Management Continues to Execute Near-Term Operating Strategy
DALLAS, Nov 17, 2008 (BUSINESS WIRE) -- Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) announced today that it continues to execute its near-term operating strategy to increase liquidity, reduce leverage and improve profitability. The Partnership has completed the sale of its undivided 12.4 percent interest in the Seminole gas processing plant to plant operator Hess Corporation for $85.0 million. In addition to the Seminole transaction, the Partnership completed the sale of another nonstrategic asset for $20.0 million, which resulted in total proceeds from both transactions of $105.0 million. Crosstex also completed the amendment of its existing debt covenants to create additional room to operate.

"In these times of challenging capital markets and a continually changing business environment, we are pushing ahead to execute our strategy," said Barry E. Davis, Crosstex Chairman, President and Chief Executive Officer. "We have said that one of our primary actions to improve liquidity is to divest nonstrategic assets. We have completed the first steps in our plan -- the agreement to sell the Seminole plant, the closing of the second asset sale and the completion of the amendment with our lenders. We will use the proceeds from the asset sales to pay down debt."

The Seminole plant is a tertiary recovery facility operated to reinject carbon dioxide into the San Andres unit in Gaines County, Texas. Crosstex's interest in the facility was accounted for as part of the Treating Division.

About the Crosstex Energy Companies

Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates approximately 5,700 miles of pipeline, 12 processing plants, four fractionators, and approximately 195 natural gas amine-treating plants and dew-point control plants. Crosstex currently provides services for 4.0 billion cubic feet per day of natural gas, or approximately eight percent of marketed U.S. daily production.

Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) owns the two percent general partner interest, a 34 percent limited partner interest, and the incentive distribution rights of Crosstex Energy, L.P.

Additional information about the Crosstex companies can be found at www.crosstexenergy.com.

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the Corporation based upon management's experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership and the Corporation believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to the impact of the amendments to the Partnership's credit agreements on the business of the Partnership. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the Corporation, which may cause the Partnership's and the Corporation's actual results to differ materially from those implied or expressed by the forward-looking statements. These risks are discussed in the Partnership's and the Corporation's filings with the Securities and Exchange Commission. The Partnership and the Corporation have no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE: Crosstex Energy

Crosstex Energy 
Investor Contact: 
Crystal C. Bell, 214-721-9407 
Investor Relations Specialist 
Chris.Bell@CrosstexEnergy.com 
or 
Media Contact: 
Jill McMillan, 214-721-9271 
Manager, Public & Industry Affairs 
Jill.McMillan@CrosstexEnergy.com